Modern
Shanghai
city
landscape
juxtaposed
against
China’s
national
flag
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China’s
factory
activity
in
March
expanded
by
its
strongest
pace
in
more
than
a
year,
a
private
survey
showed
on
Monday,
in
signs
of
stabilizing
growth
in
the
world’s
second-largest
economy.
The Caixin/S&P
Global
China
manufacturing
purchasing
managers’
index
was
51.1
in
March
—
its
strongest
since
February
2023
—
after
coming
in
at
50.9
in
February.
Economists
had
expected
the
reading
to
hit
51,
according
to
a
Reuters
poll.
The
50-point
mark
separates
expansion
from
contraction.
This
reading
corroborates
another
official
survey
of
manufacturing
activity
that
surpassed
market
expectations
and
came
at
its
strongest
in
11
months.
The
official
survey
for
non-manufacturing
activity
in
China
recorded
its
most
robust
reading
since
June,
adding
to
encouraging
recent
export
and
retail
sales
data.
“Overall,
the
manufacturing
sector
continued
to
improve
in
March,
with
expansion
in
supply
and
demand
accelerating,
and
overseas
demand
picking
up,”
Wang
Zhe,
a
senior
economist
at
Caixin
Insight
Group,
said
in
the
survey
release.
China’s
National
Bureau
of
Statistics
released
survey
data
on
Sunday
that
showed
the
country’s
official
manufacturing
PMI
coming
in
at
50.8
in
March,
its
strongest
reading
since
March
last
year
that
was
also
stronger
than
expectations
for
49.9
in
a
Reuters
poll.
These
surveys
are
typically
the
first
economic
data
points
available
each
month
and
provide
insights
on
the
state
of
the
Chinese
economy.
China
has
set
a
growth
target
of
“around
5%”
for
2024,
while
setting
a
deficit-to-GDP
ratio
of
3%
for
the
year
and
reiterating
a
plan
to
double
down
on
“high-quality
growth”
and
manufacturing.
Given
the
high
base
of
2023
data,
several
economists
have
cautioned
Beijing
may
have
to
resort
to
more
robust
stimulus
to
achieve
its
2024
growth
goals.
Some
lingering
concerns
The
latest
data
point
to
some
lingering
concerns,
particularly
about
prices.
China’s
producer
prices
have
dipped
for
well
more
than
a
year
now,
while
consumer
prices
have
declined
in
four
of
the
last
five
months.
“Manufacturers
increased
purchases
and
raw
material
inventories
amid
continued
improvement
in
business
optimism.
However,
employment
remained
in
contraction
and
a
depressed
price
level
worsened,”
Caixin’s
Wang
said.
“Prices
remained
low.
A
drop
in
raw
material
prices
reduced
production
costs
for
manufacturers,
providing
leeway
for
them
to
lower
prices
amid
fierce
market
competition.
Both
gauges
for
input
costs
and
output
prices
reached
new
lows
since
July
2023,”
Wang
added.
